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Daniela Santisteban

Collaborative Partnerships for Development I. Introduction: In the following paper I will address the history, components, functions, and flaws of collaborative partnerships for development. While partnerships for development were founded decades ago, progress in economic and social development in developing nations is not substantial. Although there is a large amount of organizations of all sectors (private, public, and NGOs) that are continuously striving for improvements in this global development, there are flaws within the partnerships system that have prevented many developing nations from rising above their unfortunate situation.

II.

The Roots of Collaborative Partnerships A. Definition of a collaborative partnership: coalition of organizations from the business, government and/or civil society (NGOs) that share a common purpose and are willing to share the responsibilities, costs and benefits that come along with it. (Lawrence, Kolk) B. In the 70s multinational enterprises were accepted in the South (hemisphere) but there was no regulation for them. (Reed) 1. Developing countries organized with the UN to try to regulate multinational enterprises. (Reed) 2. U.N. develops commission to work out Code of Conduct for International Corporations, but it is abandoned in 1992, after 12 years of drafting. (Reed) C. In the 1980s the States rather than companies were viewed as the problem. (Reed) 1. Around that time International Financial institutions had created liberalizing trade agreements that made it harder for governments to protect domestic markets with competition from multinational enterprises. (Reed) 2. These International Financial institutions had also attached conditions to the loans that they gave developing countries that made these States let MNCs take over public enterprises. (Reed, Lawrence) a. So instead, to help their markets and slow economies, the countries competed to attract MNCs instead of rejecting them. (Reed) 4. Advocates of economic liberalization argued that companies were the new promoter of economic growth. (Reed)

5. Sustainable Development is coined in by the World Commission on Development and Environment at this time and a focus to better peoples conditions around the world to improve the environment become the new critique for judging nations on development. (Reed, Scherr) a. Sustainable development is defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Scherr) D. In 1992, the Conference on Environment and Development in Rio de Janeiro took place 1. After this Summit, NGOs found it more convenient to work with multinational corporations directly. (Reed) E. In the 90s the UN realized that it could benefit from relying on the private sectors expertise to achieve their goals more efficiently. (Utting) 1. Around this time the UN was suffering from financial difficulty while the corporate sector was enjoying wealth, so it made sense to include them in their goals. (Utting) a. This wealth allowed for the start of a lot of philanthropy from the private sector, which actually amounted to more than Foreign Direct Investment inflow for the time. (Utting) b. NGOs were also enjoying wealthy times and so they were able to become involved with the private sector abroad especially with corporate social responsibility. (Utting) 1. The UN publishes the Millennium Development Goals in 1995 a. It laid out eight goals that it challenged the nations of the world to achieve by 2015. (Reed) i. End poverty and hunger ii. Universal Education iii. Gender Equality iv. Child Health v. Maternal Health vi. Combat AIDS/HIV vii. Environmental Sustainability viii. Global Partnership b. UN funds the United Nations Fund for International Partnerships in 1998. To try to comply with the Millennium Development Goals that the UN had set. (Reed) c. Cross-sector partnerships were believed to help with these goals. (Kolk)

III.

Foreign Direct Investments that can collaborate in Partnerships

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A. Definition of Foreign Direct Investment: A corporation making a physical investment in another country. B. Around the 90s, FDIs were thought to help the economic situation in developing nations. (Utting) C. There are two different types of FDIs: Cross-border Mergers and Acquisitions and Greenfield investments. 1. Cross-border M&As (Mergers and Aquisitions) a. Definition Transfer of assets from a local facility to a foreign country. (Calderon) b. Cross-border mergers: Facilities and operations from different countries are combined into a single identity. (Calderon) c. Cross-border acquisitions: The control of assets is transferred from the local (the parent) firm to the foreign one. (Calderon) i. Cross border M&As are mainly composed of acquisitions. (Calderon) d. These kinds of FDIs grew rapidly in the 80s, lead mainly by acquisitions of public assets in developing nations. (Calderon) e. According to studies by Calderon, a rise in M&As has been observed to lead to domestic investments in the host country.(Calderon) i. This is beneficial for communities and employees because spending more money domestically can help create more jobs and keep employees working . f. However, M&As having a positive impact on economic growth was not observed in these studies. (Calderon) i. This means that FDIs were not helping the economy of developing nations like many though they would. (Utting) g. These kinds of investments, although more common in developing countries, actually are less persistent than Greenfield Investments. (Calderon) 2. Greenfield Investment a. Definition: When a local firm invests in a new facility or expands their facilities into a new country. b. In studies done b Calderon, a rise in Greenfield Investments was observed to lead to domestic investments (especially

in Latin America and developing countries). (Calderon) c. Just as with M&As, economic growth through Greenfield is not statistically proven. (Calderon) D. Multinational corporations have learned to exploit partnership advantages for their foreign purposes. 1. They can use these partnerships to get established in the foreign countries. (Utting) 2. They can use special capabilities of the government and community that are not found in their home country. (Lawrence) 3. Teach the host company about stakeholder expectations. (Lawrence) 4. Ensure that their programs and projects follow local laws and values. (Lawrence) 5. Enjoy good PR campaigns (Reed, Utting) 6. Use the UN to enter virgin markets. (Utting) C. Factors that attract foreign investors to host nations 1. Low wages (Biwas) a. But this is not the most crucial factor, and is usually taken into consideration along with other factors like the market situation and resources in the area. (Biwas) b. Employees in these countries, although receiving low wages, will benefit from this because it will give them a greater chance of holding a job. 2. Good national infrastructure (Biwas) 3. Institutions that protect property rights (Biwas) a. Thus democracies are a better option because they protect private property. (Biwas) b. Communities will benefit from this because if there is competition to attract transnational corporations, democracies will be seen as a better option as opposed to autocracies. 4. A long regime duration (Biwas) 5. High productivity and high growth nations (Calderon) 6. Attractive market sizes (Utting) E. FDIs in developing nations and Latin America

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1. Have dramatically increased since the 1990s by companies acquiring previously public enterprises and privatizing them. (Calderon) 2. These are mostly comprised of M&As, and not Greenfield. (Calderon) 3. The rise in acquisitions will not end FDI rise in these countries because M&As are usually followed by Greenfield Investments. (Calderon) 4. The factors that attract FDIs, however, limit entry to just a few countries when there are many more that are in dire need of development. (Utting) a. Such countries include nations with growing economies like Brazil and China. (Utting) 5. The countries that do get FDIs however do not receive much help from the corporations themselves, even if they are in partnerships. (Utting) a. There is relatively little help with improving poverty. (Utting) b. There is also little to no help improving healthcare. (Utting) c. Other actors in development like NGOs and civil society organizations are also very limited in number in these countries. (Utting) D. Why companies want to expand internationally because it 1. Cross-border capital flow may be beneficial for the country/countries increases economic productivity (Gadinis, Lawrence) 2. Can be beneficial to shareholders wealth. (Doukas) areas where a. This can happen when a company expands into geographic it has not been before. (Doukas) i. Corporate international diversification does not result in profits for stockholders of the firm already operating in that host country. (Doukas) ii. They reap the greatest benefits when the firm expands into a new industry and geographic market. (Doukas) b. This can happen when the economies of the acquirer and acquire are not integrated. (Doukas) i. This means that a firm from a developed country will have the greatest benefits if it establishes itself in a less developed country. (Doukas)

IV. Problems with Global Management A. Harmonization of international business Laws has not been accomplished, so companies are discouraged to go international 1. Differences in regulation in different countries cause high transaction costs and discourages financial activity. (Gadinis) 2. Globalization has brought more competition for even firms working in a dispersed market (where they do not need to be a part of a central exchange to compete). (Gadinis) 3. The way to harmonize is to coordinate regulatory policies. (Gadinis) a. Dominant states like the U.S. can easily do this because they set standards for everyone else since they have a dominant center (like the New York Exchange) and so to participate in the center companies must abide to their policies. (Gadinis) 4. However, giant transnational corporations are able to go international. a. There is a large skepticism with these. (Utting) B. The Question of Subsidiary power 1. Multinational Corporation subsidiaries may not only be subordinates of the parent company, but rather units with autonomy. (Boojihawon) 2. 3. Should companies give their foreign subsidiaries more power? A study of advertising companies done by Boojihawon showed that subsidiaries may enhance the parent and host companys performance though autonomy with the following: a. Leaders with a global vision that work well with other subsidiaries (Boojihawon) b. Entrepreneurial behavior (Boojihawon)

c. Being provided with resources, networking, and information from the parent company (Boojihawon) 4. Boojihawon also found that giving subsidaries autonomy increased their innovative activities. 5. Increased performance of the host company will not only benefit the parent company but also the host nation. (Boojihawon)

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C. Global Codes of Conduct 1. They define the behaviors that are acceptable for cross-border operations. (Lawrence) 2. The Global Compact a. It was launched by the UN in 1999. (Reed) b. It asked businesses to voluntarily support nine core principles, which are divided into categories dealing with general human rights obligations, standards of labor, and standards of environmental protection. (Weissbrodt) c. Its intention was to encourage greater business responsibility, and encourage partnerships between the private sector and the U.N. to help development in undeveloped areas. (Reed) i. However, there was no compliance system. (Utting) d. However, since there was not another international agreement Instated, partnerships were thus regarded as the new way to promote development. (Reed, Utting) e. Criticisms i. Can allow corporations to pretend to be socially responsible by being associated to the UN. (Utting) ii. NGOs and others began initiatives to promote a corporate free UN. (Utting) iii. Some NGOs tried to change the system from within by joining the Global Compact and wrote a letter to the UN expressing their concern for the Compacts lack of accountability. (Utting) iv. NGOs also organized a Compact Counter Summit and issued the Joint Civil Society Statement on the Global Compact and Corporate Accountability where they addressed the commercial use that the Global Compact could mean for corporations. (Utting) f. In response to criticisms about accountability the Global Compact released Busines UNusual (Utting) i. This release suggests in its contents that partnerships in the UN should directly contribute to specific UN organizations and build on that organization. (Utting) 5. The OECD (Organization for Economic Co-operation and

Development) Guidelines for multinational Enterprises a. These are also voluntary like the Global Compact. (Lawrence) b. They have two objectives (Hgg) i. To encourage positive contributions from multinational companies to economic and social progress. (Hgg) ii. Have equality in treatment of multinationals compared to domestic companies. (Hgg) iii. The second objective seems to take priority over the first in the Guidelines. (Hgg) c. One of the problems that the Guidelines have is that they are very ambiguous when it comes to international accounting standards; there is no compliance system. (Hgg) i. There is a special need for clear rules for multinationals since otherwise their behavior might be irresponsible and go unpunished. (Hgg, Campbell) d. The Guidelines have been reviewed in 2000 for more socially responsible behavior. (Weissbrodt) 6. Human rights issues a. International Child Labor Standards i. The Minimum Age Convention, set age standards, but not enough countries ratified the rules. (Kornikova) ii. The Worst Forms of Child Labor convention addressed issues such as slavery, child trafficking, hazardous work, and other intolerable types of child labor; the U.S. and many other nations ratified these standards. (Kornikova) iii. The best interest of the child should be taken into consideration when a company finds child labor and measures should be taken in order to assure the child has a choice in the decision made, this is to protect a childs education or survival without a job. (Kornikova) with the U.S. (Kornikova) iv. Multinational corporations that have sufficient contact may be liable for international child labor violations.

v. Nike was accused of using Child labor in Pakistan, although they were not sued for it, they quickly moved to eliminate this. (Lawrence) b. Other poor working conditions overseas as also an issue i. Nike in the 90s had issues with sweatshops in Vietnam

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and South Korea. (Lawrence, Campbell) c. In 2003 the UN Sub-Commision on the Promotion and Protection of Human rights approved the Norms on the Responsibilities of Transnatinal Corporations and Other Business Enterprises with Regard to Huma Rights (Weissbrodt) i. Provides that States have a responsibility to instate human rights into national law and make sure that transnational corporations abide by them. (Weissbrodt) ii. Provides that transnational coporations have an obligtation to abide by these standards and protect and promote human rights. (Weissbrodt) iii. The Norms, however, are not legally binding. (Weissbrodt) 7. Voluntary Codes of Conduct according to human rights issues a. VCCs are usually ambiguous and are treated as aspirations rather than rules (Campbell) b. Human right issues are usually avoided all together in VCCs (Campbell) i. However, focusing on human rights in VCCs would be able to bring a more achievable focus to them. (Campbell) ii. It would also pressure companies to follow the codes because they would not want to be accused of violating human rights. (Campbell) c. VCCs can be seen as a veil of pretending to use fake business ethics to obtain more self regulation and have better PR. (Campbell) i. This problem would be solved with a human rights approach and would actually legitimize this self regulation. (Campbell) d. VCCs can be an alternative to governmental regulation in places where this regulation is lacking to begin with. (Campbell) i. In this places it is probable that the governments are already having a hard time regulating business and so VCCs that protect human rights would be helpful. (Campbell) e. VCCs usually ask to respect the host countrys laws but they ignore the great influence that multinational enterprises can have. (Campbell) i. These companies have a great financial stake in the country. (Campbell)

ii. They can use their influence to affect implementation of human rights. (Campbell) iii. For example, activists argue that Shell could have used its influence in Nigeria to change the destiny of the man that was hanged for speaking out against Shell. (Lawrence) 8. Inherent flaw with voluntary codes of conduct: no set compliance system to make sure the companies are following through with the codes. (Campbell, Utting, Hgg, Weissbrodt) C. Biggest two fears with businesses involved in Partnerships for Development 1. Businesses will use them merely for PR/marketing reasons (Reed) 2. Businesses will use it to legitimize self-regulation that will badly affect development prospects. (Reed) 3. However, Utting argues that with Corporate Social Responsibility, even if these are the initial motives, the corporations will move to a stage where they are proactive and responsive. (Utting) D. Compliance Systems 1. Normally codes of conduct do not have a working compliance system to maintain a strong bind to the codes that they preach. (Utting, Campbell, Hagg) 2. Partnerships were seen as a possible solution to this problem. (Utting) 3. There are, however, compliance systems created by independent organizations 4. One such is Social Accountability Interntionals SA8000 system (Social Accountability International, Weissbrodt) a. SAIs objective is to improve workplaces and communities worldwide through socially responsible standards. (Social Accountability International) b. This system includes all stakeholders to agree to conduct business with voluntary standards. (Social Accountability International) c. It accredits the qualified organizations with a verified compliance(Social Accountability International) d. It is comprised of the following: i. Covers all widely accepted labor standards (Social Accountability International) ii. Has verified, expert verification of compliance (Social

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Accountability International) iii. Management in factories is required to foster these standards (Social Accountability International) iv. Needs involvement of all stakeholders (Social Accountability International) v. Has public records of all the companies progress (Social Accountability International) vi. Meets consumer, investor, and government concerns. (Social Accountability International)

V.

Modern Partnerships for Development A. Why choose partnerships for development? 1. In a complex, globalizing world it makes sense that different actors for development would share the risks as well as benefits. (Utting) 2. Partnerships can have economic , non-economic objectives, or both. (Kolk) 3. A modern global governance might require a shift from a hierarchy styled corporate governance, to a cooperative one with multi-stakeholder mindset. (Utting) 4. Partnerships would be a way to address this shift market multilateralism. (Utting) a. According to Utting, with Voluntary Codes of Conduct associated with Corporate Social Responsibility, partnerships can shift state-led development to a market-driven force development. (Utting) i. But this can only happen if values about development have been internalized in corporations (Utting)

B. The OECD (Organization for Economic Co-operation and Development) has defined partnerships as a measure of overcoming certain failures. (Kolk) 1. Failure of government to address development problems (Kolk, Utting) 2. Failure of the market to become morally virtuous (Kolk, Utting) 3. Failure of non-profit organizations that have good intentions but are inefficient at implementing them (Kolk) C. According to Kolk, there is three main types of partnerships 1. Private/Nonprofit partnerships (Kolk) a. A d d r e s s t h e t r a d e o f f b e t w e e n

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s o c i a l e q u a l i t y a n d a n e f f i c i e n t m a r k e t . ( K o l k ) 2. Private/Public partnerships (Kolk) b. A d d r

e s s t h e p r o b l e m o f l a c k o f i n v e s t m e n t f r o m t h e g o v

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e r n m e n t a n d c o m p a n i e s i n t h e p r o v i s i o n o f p u b l i c g

o o d s . ( K o l k ) 3. Tripartite partnerships (Business, government, NGO) a. Address the problem of a void of institution left by a weak or retrieving government. (Kolk) b. However, ironically, when a business has settled in a host country, filling this void, and then begins to pull out, the same effect of an institutional void will happen. (Utting) E. According to Reed, there is four types of partnerships 1. Conventional Business Partnership a. Here the role of the business is to improve the efficiency of delivery of public services in order to reduce governmental control. (Reed) b. It can contribute to development when there is a free market where the government ensures that the services are being done in the interest of the public. (Reed) c. The business is not required to prove that their actions are socially responsible. (Reed) d. The government here is in charge of making sure the poor is accessible to these services by providing programs and subsidies to make it possible. (Reed) e. However, the best opportunities for this partnership lie

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in higher income countries (where less development is needed.) (Reed) f. Follows the neo-liberal approach where the business is the main agent of development, but usually does not live up to expectations where instated. (Reed) 2. Corporate Social Responsibility Partnerships a. The businesses can join voluntarily and the partnerships are usually business initiated. (Reed) b. Many times they are initiated to bypass legally binding controls over their activities. (Reed) c. Initiate services programs such as microcredit, humanitarian assistance and disaster relief. (Reed) d. There needs to be a motivation for companies to join which is usually either ethics related or for PR. (Reed) e. Companies invest little in these partnerships so the poverty and thus living conditions of the country are not improved very much. (Reed) f. Follows the capabilities approach which only guarantees the basic minimums to live and puts the government in position to ensure economic and social welfare. (Reed) 3. Corporate accountability Partnerships a. They seek to increase greater control over business sector behavior. (Reed) b. They are mainly concerned with monitoring, reporting and enforcing standards in company activities. (Reed) c. They need public support and public institutions help to make up for their lack of monetary resources. (Reed) d. Follow the human face approach which says that partnerships need to rise from the neo-liberal approach and give more power to the states to protect workers and the environment. (Reed) 4.Social Economic Partnerships a. They have a social purpose, are democratically controlled, and are committed to cooperating with other Social economic partnerships. (Reed) b. They do not need a motivation for the business or a win-win situation, they are devoted to giving. (Reed)

c. They have two main activities: help entrepreneurial or fleeting SE partnerships and create cheap, public programs for the poor. (Reed) d. They must engage with the government and maintain ties with social movements to survive. (Reed) e. Follows the social justice approach which aims to enable social power to citizens. F. When and if Partnerships integrate beyond a philanthropic relationship dependent of donating to each other there are benefits for the NGOs as well as the company. (Kolk) 1. Benefits for the company a. They would get the knowledge of the NGO about issues (Kolk) b. Get access to networks in the area (Kolk) c. I n c r e a s e a w a r e n e s s a n d c r e a t e

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a t t r a c t i o n t o e x i s t i n g a n d n e w c u s t o m e r s . ( K o l k ) d. I n c

r e a s e b o t h t h e i r l e g i t i m a c y a n d c r e d i b il i t y t o c o n s u m e r s

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. ( K o l k ) 2. Benefits for the NGOs a. D i r e c t s u p p o r t f o r t h e i r c a u s e f r o m t h e p r i v a t e

s e c t o r ( K o l k ) b. Access to expertise in marketing and technical work (Kolk) c. Wider networks and a more solid future (Kolk) d. Experience and opportunities for staff and volunteers (Kolk)

VI. International Financial and Trade Institutions A. Multinational corporations cannot have cross-border operations without complying to their rules. (Lawrence) B. The World Bank 1. Its original purpose after WWII was to provide loans for economic development to nations that were its members. (Lawrence) a. Intended to rebuild economies of Europe after the war. (Lawrence) 2. Mainly, it invested in human development programs, and this continued on through the 70s. 3. In the 80s however, it turned to supporting structural adjustment programs by giving out loans to member nations. (Reed, Lawrence, Blake) a. These programs have strong conditions to make sure the countries can pay back the loans. (Lawrence) b. These mainly consisted of ways that countries would have to go under financial reforms. (Blake)

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i. As one of the conditions, in the 90s it required the privatization of many public utilities for its members, allowing TNCs to have acquisitions in underdeveloped countries. (Reed) c. Many of these conditions largely failed as many countires were not able to go under such financial reforms. (Blake) 4. The Bank received constant criticism on not participating in human interest development or cooperating with other development actors. (Blake) 5. So in 1999 it created the Comprehensive Development Framework, trying to become a more active actor in development. (Blake) a. This frame highlighted the interdependence of development actors (Blake) i. Such as financial institutions, private sector, NGOs (Blake) b. This plan followed 4 core principles (Blake) i. Independent countries had to set own individual agendas (Blake) ii. Development should include economic as well as social considerations. So there is a recognition that development is multi-faceted. (Blake) iii. All actors of development should be involved when creating and implementing policies to encourage transparency and cooperation. (Blake) iv. Development should have a long-term focus (Blake) c. The act encourages Bank cooperation with all actors of development (not just governments like before) especially the private sector. (Blake) d. Criticisms of the CDF (Blake) i. Plan will still be in the hands of national governments so the poor might not be heard. (Blake) ii. There is only plans for it to be implemented in developing countries, when there is poor in developed countries as well. (Blake) e. The pilot program for the CDF was largely unsuccessful

(Blake) i. It only gave governments improved relations with international donors. (Blake) ii. Also, civil service organizations were lacking in the process (Blake) iii. Development cannot work unless every actor is involved. (Blake) 3. Created Business Partners for Development in 1998 (Reed) a. Encouraged partnerships (Reed) b. Was created to advise governments about the social consequences of privatization. (Reed) 2. International Monetary Fund (IMF) member (Lawrence) implemented i. But debt relief plans are beginning to be to help poor countries. (Lawrence) a. Its purpose is to facilitate currency exchange for nations for participation in global trade. (Lawrence) b. It also has strict conditions attached to its loans

VII. Stakeholder Analysis A. Utting argues that in todays global world there is a shift from corporate dominance to a multi-stakeholder model, where partnerships can play an important part. B. Owners 1. Corporations can increase their shareholder wealth by expanding internationally. 2. They can also increase this wealth with benefits from partnerships a. Good PR that can attract consumers b. Less regulation by governments which allows for freer transactions that might be more profitable. 3. Through shareholder activism, owners can accomplish socially responsible goals 4. With a multi-stakeholder perspective, like collaborative partnerships encourage, creating value for all other stakeholders will also create value for the owners.

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C. Community 1. Multinational corporations, which are the ones mainly involved in partnerships for development, are able to reach a large, global community. 2. The corporations large economic influence in host countries in able to change policy that affect entire communities. a. This includes human right policies as well 3. NGOs are representatives of specific community interests and work directly in partnerships. a. They increasingly push for more accountability from the private sector i. They have done this by trying to reform the Global Compact ii. Social Investing International has actually created an accountability system. b. They are mainly concerned with development without reaping profit, unlike companies. c. However, there a little of these where the biggest compilations of FDIs are. 4. Partnerships also can take place where there is an institutional void left by weak governance, filling this void would help communities with growth and leadership. a. However, if the private sector of these partnerships begins to retreat, this void can reappear. D. Employees 1. Employees in host, developing nations can have great benefits from FDIs. a. They can acquire jobs otherwise not available letting them have a higher standard of living. b. With international labor standards that have been largely ratified, multinational enterprises are largely pressured into abiding to these to prevent litigation and ruined reputations, so employees human rights can be protected. 2. However, when companies violate these rights it is hard to catch them because many companies Volunteer Codes of Conduct either do not include human rights or do not have the right compliance system to prevent every labor standard violation.

E. Consumers 1. With compliant voluntary codes of conduct consumers can take part in helping corporations that truly endorse development. a. However, on the reverse, corporations pretending to be socially ethical with a partnership mask can fool consumers into buying their products and services with PR. 2. With cheap labor abroad consumers can also enjoy products that would otherwise be inordinately expensive. a. This might be at the expense, however, of abusing labor standards with no compliance procedures. 2. Consumer groups represented by NGOs can also have their social responsibilities imposed on corporations through partnerships. F. Suppliers 1. Multinationals suppliers, although not completely part of the company, still are subject to labor standards, especially very controversial ones like child labor. a. But companies have taken initiatives to prevent these types of human abuse such as Nike. G. Market 1. In a growing global market FDIs mean tougher competition for domestic firms. a. Domestic firms in developing countries are in a substantially more difficult situation since their governments try to attract transnational corporations instead of protecting the domestic ones. 2. Even large multinationals also have something to worry about, however, since this global environment might mean that smaller firms will merge to create a bigger competition for bigger firms. 3. The UN can actually increase the competition market since they may act as a broker in privatizing public enterprises in developing nations. (Utting) a. The World Bank has also played a part in this, attaching conditions for developing countries that make their private assets open for privatization, thus increasing competition since the industries would no longer be statecontrolled. VIII. Conclusion: Partnerships for developments were at first seen as the new way to manage economic and social developing in an increasingly complex global world. However, they have done little to fully fulfill this purpose since they need to go through many reforms to have a fully working development strategy. Nonetheless, despite the reform needed, there is

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hope since progress has been made toward working partnerships. These include: reviews to Codes of Conduct, compliance systems being created, and probably more importantly, several companies turning toward a multistakeholder system that imbeds social responsibility at its core